What is an Appraisal??
Real estate appraisal, of property is the service of developing the value of real property, usually its market value. The need for appraisals arises from the unique nature of property, whereas no two properties are identical, and all properties differ from each other in their location. This is the most important determinants of their value. So there does not exist a standard setting for the trading of property. The absence of a market-based pricing mechanism determines the need for an appraisal. Although some areas require no license, a real estate appraisal is generally performed by a licensed appraiser. If the appraiser's opinion is based on market value, then it must also be based on the highest and best use of the property. For mortgage valuations of improved residential property in the US, the appraisal is most often reported on a standardized form. Most consumers have their first contact with an appraiser when they seek financing on their home purchase. The property they desire must appraise to a certain value in order for the lender to approve the buyer’s loan.